Back to top

Image: Bigstock

GOOS or MNSO: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in Retail - Apparel and Shoes stocks are likely familiar with Canada Goose (GOOS - Free Report) and MINISO Group Holding Limited Unsponsored ADR (MNSO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Canada Goose is sporting a Zacks Rank of #2 (Buy), while MINISO Group Holding Limited Unsponsored ADR has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that GOOS likely has seen a stronger improvement to its earnings outlook than MNSO has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

GOOS currently has a forward P/E ratio of 13.90, while MNSO has a forward P/E of 19.33. We also note that GOOS has a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MNSO currently has a PEG ratio of 1.37.

Another notable valuation metric for GOOS is its P/B ratio of 4.12. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MNSO has a P/B of 4.99.

These are just a few of the metrics contributing to GOOS's Value grade of A and MNSO's Value grade of C.

GOOS stands above MNSO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GOOS is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Canada Goose Holdings Inc. (GOOS) - free report >>

MINISO Group Holding Limited Unsponsored ADR (MNSO) - free report >>

Published in